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It can be said with absolute certainty that the RKJ Group has
carved out a special niche for itself. Its services touch different
aspects of commercial and civilian domains like those of
Bottling, Food Chain and Education. Headed by Mr. R. K.
Jaipuria, the group as on today can laid claim to expertise and
leadership in the fields of education, food and beverages.
The business of the company was started in 1991 with a tie-up with Pepsi Foods
Limited to manufacture and market Pepsi brand of beverages in geographically
pre-defined territories in which brand and technical support was provided by the
Principals viz., Pepsi Foods Limited. The manufacturing facilities were restricted
at Agra Plant only.
The group also became the first franchisee for Yum Restaurants
International [formerly PepsiCo Restaurants (India) Private Limited] in India. It
has exclusive franchise rights for Northern & Eastern India. It has total 46 Pizza
Hut Restaurants & 1 KFC Restaurant under its company.
Vision
Mission
•Driven by a management
team with a relentless focus on achieving superior
customer service, driving earnings improvement and
increasing shareholder value.
Their People
Pepsi
Diet Pepsi
Pepsi Aha
Slice
Mirinda
7-Up
Aquafina Mineral
Water
TYPES OF PRODUCTS:
Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft
drinks. Soft drinks can be further divided into carbonated and non-carbonated
drinks. Cola, lemon and oranges are carbonated drinks while mango drinks come
under non-carbonated category. The soft drinks market till early 1990s was in
hands of domestic players like campa, thumps up, Limca etc but with opening up
of economy and coming of MNC players Pepsi and Coke the market has come
totally under their control. While worldwide Coke is the leader in carbonated
drinks market in India it is Pepsi which scores over Coke but this difference is fast
decreasing (courtesy huge ad-spending by both the players). Pepsi entered Indian
market in 1991 coke re-entered (After they were thrown out in 1977, by the then
central government) in 1993.
Carbonated soft drinks major Pepsi India is now putting together a ‘cocktail’ to
take a bigger ‘slice’ of the fruit juice market. Close on the heels of the launch of its
global lemon drink Twist in an Indian avatar as Pepsi Aha, Pepsi, once again, is all
set to roll out another global product—in a localized version. Come June 2002, and
Pepsi will roll out the blends of its international fruit drink Twister in the country,
albeit, with a difference. In India, Twister blends will be launched as mixed fruit
cocktails under Pepsi’s existing juice brand Slice. Pepsi spokesperson, when
contacted, confirmed the launch but said the products will be launched on an
‘experimental basis’ for three to four months beginning June 2002. However,
confirmed sources said that the product has been test-launched and is ready for a
formal launch in June. Globally, the proposed Slice fruit blends exist under Twister
brand and are available in over 10 flavors and in various packaging options.
However, in India, while the blends will be decided as per local tastes and as per
the availability of fruit pulp, packaging will be restricted to cartons only. Among
the four to five flavors planned, strawberry-peach and kiwi-guava are some of
them. However, the new product could be priced a little higher than Slice since
Twister—originally—is believed to have more than 15 per cent juice content.
Slice, on the other hand, is a 15 per cent juice drink positioned at the mass-end;
against the 100 per cent fruit juice Tropicana, which is at the top-end. Pepsi’s
decision to launch Twister flavors as Slice variants rather than the original brand
itself follows the company’s decision to make Slice the mother juice brand in
India.
The company had at one time contemplated bringing Twister in its original self to
India but the plan was later shelved. “Internally we have been debating whether to
go ahead with Twister or keep Slice as a mother brand for juices,” the Pepsi
spokesperson said. The move, point out industry observers, is clearly aimed at
saving costs of launching an altogether new brand and instead cash in on the
potential of a existing juice brand. A Rs 200-crore brand, Slice was originally
launched as a mango drink in returnable glass bottles. Last year, in fact, Pepsi
launched a new advertising campaign to rejuvenate the brand’s mango positioning.
And early this year, it was launched in cartons and more recently—three new
flavors—orange, leechi and guava—were added to the brand.
Burdened by high cost of production of returnable glass bottles, Pepsi India has
decided to look at the most sought after packaging alternative—flexible packaging
—more seriously. The company through one of its prime bottler Mr. Ravi Jaipuria
of Varun Beverages Ltd is now setting up a new carton line (tetrapack) at its
existing bottling plant at Noida in Uttar Pradesh.
The plant with a capacity of 5,000 to 7,000 cases per day will be used to pack
Pepsi’s juice drink Slice and its new variants in 200-ml cartons. The product is
currently being packaged at Varun Beverages at Boranada Road Jodhpur.The
Noida slim line carton plant—which is expected to take off shortly—will cater to
the north market and will help the company cut huge transportation costs.
COMPANY PROFILE:-
Since the entry of Pepsi co. to India in 1987, the soft drink Industry has undergone
a radical change. When Pepsi entered parley was the leader with ‘Thumps UP’
being its flagship brand. Other product offerings by parley included Limca & Gold
Spot. Another upcoming player in the market was the erstwhile bottle of Coca-
Cola, Pure Drinks. Its offerings included Campa Cola, Camps Lemon and Campa
Orange.
With the re-entry of Coca-Cola in the Indian market, Pepsi had to go in for
more aggressive marketing to sustain its market share. The chronology the initial
phase of the “Coal Wars” in India was
July 1986
An application for soft drinks-cum-snack food joint venture
by Pepsi, Voltas and Punjab Agro is submitted to the government
after an earlier proposed alliance- 1985, between Pepsi and
Duncan’s of the Goenkas fails to take off.
Sept.1988
March 1990
Pepsi extends its soft drinks reach on national scale. Products launched
Delhi and Bombay.
Jan 1992
1993
Pepsi launches Teem and Slice. Captures about 25.30% of
the soft drinks market in about two years.
July 1993
Volta’s pulls out of PFL joint venture. Pepsi decides to raise equity to 92%
Reports of coke – Parle negotiations gain strength.
1994
1995
1997
1998
1999
Pepsi has launched its Diet Pepsi Can and 1.5 Liters pet
battles for health conscious people.
1997
2005
Mirinda lemon zinger, 7UP.Ice was launched by Pepsi.
2006
2007
Company vision
PRODUCT PORTFOLIO:-
Refreshment beverages
Sports drinks
Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options– Diet Pepsi and 7Up
Light; hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports
drinks - Gatorade, and 100% natural fruit juices and juice based drinks – Tropicana, Tropicana
Twister and Slice. Our local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola
complete our diverse spectrum of brand
PRODUCT BOTTLE
FILLING
SLICE 250ml
DISTRIBUTION NETWORK:-
Pricing Strategies:-
Market share:-
Competition:-
Market structure:-
CUSTOMER
CUSTOMER
RETAILER
WHOLESALE
DISTRIBUTO
RETAILER
SALESME
WAREHOUS
SLUMS
COBO
FOBO
CCOMPANY
&F
NR
E
Initially the focus of the Company remains on reaching all the markets and then the Company
shifts its focus on increasing the frequency of sales in the respective markets so that the sales and
profitability of the Company can be increased.
Company (PepsiCo): PepsiCo India provides the salt to all the bottling plants in the Country that
carry out the bottling operations.z
COBO: These are Company owned bottling operations operating directly under the Company.
Out of 32 bottling plants, PepsiCo owns 15.
FOBO: These are Franchise owned bottling operations. R K Jaipuria group does all the
franchisee-bottling operations for PepsiCo India; currently R K J Group has 17 bottling plants for
Pepsi.
Warehouses: These are Company or franchisee owned warehouses spread over various
locations that cover the respective territories and come under the purview of their respective
Area or Territory Offices. Stocks are sent from the bottling plants to these warehouses, from
where they are sent to the C & F centers and Distributor Points.
C & F Centers: These are the biggest centers in the distribution network and receive proper
assistance from the Company (either COBO or FOBO). The C & F center is owned by a private
player and not by the Company. The vehicles (Delivery Vans) are owned by the Company, and
the Salesmen at the C & F points are on the Company Payroll.
Distributors: These are small, compared to C & F centers. Everything at the Distributor point
owned and managed by the distributor, even the salespersons are on the Distributors payroll.
Wholesalers: These are smaller than C & F centers and Distributor points and get the stock
directly from the Company or Franchisee. They get their stock directly from the Company and
thus get special rates and extra discounts from the Company.
Slums: They are generally smaller than the Wholesalers are. However, they get special
discounts from the C & F centers and Distributor points.
All the different players in the distribution channel namely C & F centers, Distributor points,
Wholesalers and Slums have different designated markets and are not supposed to operate in the
market designated to any other player.
Retailer: Retailers are the most important chain in the distribution channel of Pepsi as they are
the only point of contact with the customers. Retailers get their stock from all the other channel
members in the distribution channel.
ORGANISATIONAL STRUCTURE:-
ABOUT THE CUSTOMERS:-
As my company guide given me the topic of promotional merchandising I had covered several
shops and I understand this concept equally well by covering almost 20 shops in 15 days. These
are as follows:
Retail shops
Food Marts
Shopping Malls
Bakery Shops
Food Court
SEGMENTATION:-
GEOGRAPHIC:-
TARGET AREA – Domestic users, Restaurants, Bars, School and College canteens.
DEMOGRAPHIC:-
Age – 14 to 30
Psychographic:-
Pepsi attempts to capture the youth of today by focusing on their personality, lifestyle and
attitude of youth through advertisement
Behavioral:-
PRODUCT POSITIONING:-
Pepsi prefers to position itself as the beverage choice of the “New
profiled to be between the ages of 18 to 29. They have high expectations in life and
active. They adopt a lifestyle of living for today and not worrying about long-term
goals. Though Pepsi’s main emphasis is on this segment but they also have a focus
The rich deep blue coloring represents eternal youthfulness and openness.
Marketing plans like “Yeh Dil Maange More”, “Got Another Pepsi”, “Ye Pyass
Hai Badi” have made Pepsi one of the coolest brands recognized among teens in
the top five and the only beverage product in this category.
MARKET RESEARCH
QUESTIONARES
PERSONAL DETAILS :-
NAME:- __________________________
1. AGE
A) 17-20
B) 21-24
C) 25-28
D) 29 and Above
1. GENDER
(A) Male
(B) Female
1. EDUCATION
(A) High school
(B) Under graduate
(C) Graduate
(D)Post Graduate
(E) Others
MARKET SURVEY:-
1. Through which medium did you come to know about your preferred soft
drink brand?
(A) Hoardings & Banners
(B) Newspapers & Magazines
(C) T.V./ Radio
(D)Word of mouth
(E) Others
1. Which is the most preferred channel for purchasing a soft drinks?
(A) Retail/ Grocery Store
(B) Supermarket/ Hypermarket
(C) Cineplex
(D)Pan Shops
(E) Restaurants
(F) Others
FLAVOUR
NO OF FLAVOURS
AVALIABILITY &
CONVINIENCE
PRICE
CLEANLINESS OF
BOTTLES/ NOT
DAMAGED
MANUFACTORING
DATE/
EXPIRY DATE
FREQUENCY OF
ADVERTISEMENT
BRAND
AMBASSADOR
BRAND VALUE/
BRAND NAME
CALORIE CONTENT
PROMOTION
SCHEMES/
DISCOUNTS
VISUAL APPEAL OF
PACKAGING
INGRIDIENTS
SWOT ANALYSIS:-
STRENGTH:
WEAKNESS:
full routes.
4) Poor signage and display is making the routes week for the sale of Pepsi.
5) Interpersonal relationship with the company officials and the route agent is
not satisfactory.
• OPPORTUNITY:
It is observed that in some newly establishing areas many new outlets are
opening , Pepsi needs to concentrate on these new outlets and can gradually
Large number of mix outlets can be changed to Pepsi exclusive and coke
exclusive to mix only by luring them good and efficient supply, glow sign and
cooling equipments.
THREATS:-
NGO’s – NGO’s like CSE can seriously hamper the sales and prospects of companies
operating in this industry. This happened during the pesticide controversy involving
both coke and Pepsi.
HEALTH – Growing health awareness among people and some of ill effects of
carbonated beverages have pursued many people to switch over to non-carbonated
beverages that can seriously hamper the long-term prospects of the entire Industry
and not Pepsi.
RECOMMENDATION:-
This is one of the most important and most difficult part of the study. I arrived at
certain recommendations for PepsiCo India(Trans-Yamuna and Agra markets) after
the analysis of the data. Some of the important recommendations are as follows
• There should be and correct feedback from the retailers on the performance
of salesmen. This will help improve their efficiency and accountability.
Moreover, this will also help in reducing the confusing that the retailers have
at times because the salesmen does not explain the schemes properly.
• There should be incentives for salesmen for every display they enroll because
they are assigned this task and if they get incentives for the same then it will
greatly increase the efficiency of the promotional activities.
• Pepsi should also introduce a version of Diet Pepsi Cola as a sports drink
range this is a completely new and untapped market which will help in
providing the impetus for Diet Pepsi
• Pepsi should start more aggressive marketing of its Diet Pepsi range of
products as they have very good growth and future prospects while there is
not much growth in the carbonated beverages sector.
WHO AND WHO`S